Correlation between Iskan and Kat Mulkiyet Tapu

Turkey has been a desired location among many ex-pats to idle off the decades due to its amazing heritage, culture, landscape, and environment. There are numerous factors to consider when deciding where to live or invest. Many overseas investors were aware of the Iskan and Tapu requirements. Obtaining these two documents prior to purchasing a home is a requirement in Turkey.

Properties in Turkey must have three key elements: a TAPU, which is an ownership document, an Imar, which is construction permission, and an Iskan, which is an occupancy license. It is firmly recommended to consult with the Land Registry Office, Tapu Dairesi in Turkish, to ensure that the property is legitimate and that the deed does not have any exceptional financial penalties or debt payments tied to it, such as an ipotek, which is a mortgage for which investor would be responsible if acquired. 

Possessing an Iskan, or occupancy permit indicates that the building is livable and was constructed following the required functionality and seismic laws. In Turkey, Iskan is a process of accepting an entity into function or a technical permit for new home construction. Under the Turkish State Commission, Iskan functions as a guarantee that the building is appropriate to be used. The customer is frequently provided a fully prepared Iskan by the building company. If additional rental property is sold, Iskan is automatically moved to a different purchaser. This allows for mortgages or loans to be established on the estate and is intelligible by the title containing a mark in the line for “kat mülkiyeti,” which signifies property ownership. On other hand, the “kat irtifak,” indicates possession of a building that is not yet livable. Iskan also provides extensive information about the land area on which the property is placed, as well as technical specifications about the construction, such as the living space of all units, the number of floors, and data regarding the construction of electrical conduits and sewage facilities.

The absence of a technical passport suggests that legal registration and building have not yet been finished. A permit application is valid for 5 years in Turkey, according to Turkish law. Throughout this stage, the builder must finish the installation and get an Iskan. If the construction party fails to comply, the building license will be revoked.

A Turkish title deed, known as “TAPU”, is a vital document that denotes ownership. Deeds contain details on the estate as well as the holder. The “TAPU” and Cadastre General Directorate supply, register, and record title deeds in Turkey. Required title deeds (TAPU) are either blue or red in color. 

Blue TAPU is concerned with land title and shared ownership. When it comes to property titles, the title is only for the land and does not apply to any buildings. If the TAPU is for a multi-family complex, the title will explain how much an interested investor has: one share out of twenty. This restricts an owner’s sovereignty over the estate, and some will be trapped when it comes to making major decisions about the selling or maintenance of the property. Mortgages are not available to homeowners of properties having shared ownership titles. Individual ownership is denoted by a red TAPU or title deed, with the block mentioned on the title document. For instance, instead of a percentage of the whole construction, it will read “three dwellings.” This sort of TAPU can have a mortgage attached to it. The leasehold title is either “kat irtifaki” or “kat mulkiyeti,” which means either residential or commercial. “Kat artifact” or “construction captivity” refers to a building that is still in the process. 

A kat artifact title depicts the allocation of units inside a complex following the compulsory license. Representatives from the local authority come to inspect the “kat mülkiyeti” to verify that everything is in order. They will issue an occupation license, often known as an Iskan. An Iskan, as stated earlier, enables a title to progress to the following level: kat multiyear, or full title deed. When one kat mülkiyeti is acquired, facilities can be connected to a building. Therefore, if the title deed says “kat mülkiyeti,” it signifies the estate has an Iskan (occupation permission) required by local building officials. It is more comfortable to have a kat mülkiyeti title property since, without this document, investors may be left with substandard housing that is difficult to sell. 

Additionally, it is mandatory to have an Energy Performance Certificate (in Turkish Enerji Kimlik Belgesi) that assesses the energy efficiency of the building. This is a new rule for the housing market and acquisitions that comes into force at the beginning of 2020 year. In sequence to get needs such as electricity and water, you will also need to register for mandatory earthquake insurance (shortened DASK in Turkish). It is impossible to attach a new real estate property to the metropolitan water supply, power supply, and gas line without Iskan. Considering all the information above, as a future owner, it is very important to purchase a property with all required documents. 

If an investor intends to sell the property within five years after the acquisition, it will be liable to capital gains tax, which is determined as a tiny percentage of the income generated. Individuals looking to sell their properties also have to have their estate appraised by a privately owned business and will be liable to paying 4 percent of the practical value in taxes, bringing an end to the practice of falsifying the actual amount spent for a property to avoid paying unnecessary taxes. You can read more about acquiring properties in our Buyer Guide.

A Turkish passport can be obtained by investing at least $250,000 in real estate. In this case, when a real estate investor registers for Turkish citizenship through investment, a charge is imposed on the title deed, prohibiting title deed transfer (sale) for three years. Keeping this in mind, it is critical to obtain a title document that is free of any mortgages or levies. More detailed information about Turkish citizenship is here.